FSB has warned out that recent changes to income tax and national insurance contributions (NICs) thresholds do not go far enough.
“Amid surging fuel prices, spiralling energy bills, higher debt costs, a weakened pound, supply chain disruption, labour shortages and new trade paperwork, firms are still faced with the biggest tax burden since the late 1940s,” said FSB Policy Chair Tina McKenzie.
“Taxes which are levied with no regard for profitability or ability to pay – not least business rates, NICs, VAT and fuel duty – are really hurting firms at the moment.
“Doing more to alleviate their impact on margins would go a long way to helping small businesses, many of which are hanging by a thread.”
Ms McKenzie warned that higher rates of National Insurance are also making it difficult for businesses to increase salaries for workers, who are suffering under rising inflation.
“Higher employer NICs rates mean less money in the economy for pay rises, let alone sustainable investment, recruitment and discretionary spending,” she added.
“Though the Employment Allowance marks a vital relief on Employer NICs, and we’d encourage all small firms to check their eligibility, we need to see government go much further in addressing the cost-of-doing-business crisis that underlies the cost-of-living emergency.”